Metals, metalworking and machinery industries

A cycle-count model considering inventory policy and record variance

Article Abstract:

Record variance in inventories can be corrected by using the cycle count method which equalizes the costs of stockout and counting. Inventory record variance occurs when the balance of the system records differs from the actual physical inventory. Computer simulations of the cycle count model show decreasing errors with increasing cycles, using both the ABC and EOQ inventory methods. At 58 cycles, the error count is five or less, regardless of the inventory method.

Recoverable inventory systems with time-varying demand

Article Abstract:

A methodology for a recoverable inventory system in which the demand is subject to a non-stationary failure process is introduced. Two practical problems are addressed in developing the model. The required monthly inventory level at each location is estimated from various levels of associated stockout risk in the model. The method can be applied in the design and development of hardware for commercial and military aircraft.

Lot sizing and backordering in multi-level product structures

Article Abstract:

Lot-sizing algorithms which include backorders are a superior technique over traditional lot-sizing rules for a multi-level environment. Computer simulation studied changes in demand streams, costs and product structures while comparing each technique to an optimal solution. Including backorders aided flexibility while performance decreased slightly or not at all.